Shipping electronic goods to thailand,tax,vat etc

[jayj]

hi everybody.i have a question(and i hope somebody with more experience with these things can shed some light)

 

basically i would like to have some goods shipped to me from abroad .the items are 5 high end graphics cards (GPU) .they are BRAND NEW in box,and have a value of about 4000$.HOWEVER,i wouldnt TECHNICALLY buy them.my people back home would buy them,pay our countrys tax and then ship them to me.so strictly technically speaking.its a free gift...now my question is...how would thai customs feel about this?i dont feel i should pay any import tax on something that somebody buys in another country and then "decides to send it to me out of the goodness of their own heart"...am i correct to assume that?dont have much experience in international shipping.would the value of the goods alone warrant an import tax?even tho i technically didnt pay for them?

 

(PS...i have received a package from my people back home already last year.it was a big box containing a flat screen tv,a playstation 3,playstation 4,ps3 blutooth headphones ,5 games and various cables and some other related things...but i had no problems whatsoever...the box came,i went to pick it up...that was it.i had them mark it as gift...which it was...that my stuff that i bought back home...and the graphics cards would also be a gift ...bought by others back home and shipped to me)

 

but i read a lot of horror stories bout 80% taxes and packages being held for "ransome"..the hell am i gonna do if i have to pay a 80% tax on a 4000$ item?

(im ignorant of the law when it comes to this.the way my dumbass sees it is "this stuff is mine,...my people bought it in our country,with their money,and payed OUR tax already...if they decide to send it to me out of the goodness of their own heart thats not the thai governments busines and i dont owe them jack"...but im not sure if thats how it works)

please help me out here...thank you very much

[ukrules]

2 hours ago, jayj said:

i dont feel i should pay any import tax on something that somebody buys in another country and then "decides to send it to me out of the goodness of their own heart"...am i correct to assume that?

No, you are completely wrong on this. If they find them you will be charged both duty and VAT and it could be more than you think as they also tax the shipping and there could also be additional handling fees from whoever you use to send them with.

 

If you don't pay then you don't get the items.

Edited January 14, 2018 by ukrules

[Crossy]

+1 on ukrules. The Thai authorities don't care if the tax has been paid elsewhere, they want their slice of the cake. Shipping the other way would be the same, with your home country taking a chunk.

 

You could possibly save the VAT in your home country by getting it exported by the seller if they will do this. Otherwise it's duty at the appropriate rate charged on the CIF (Cost, Insurance, Freight) price plus VAT on the lot.

 

That said, stuff sent by the regular mail system often gets through unmolested. I'd be tempted to send the cards individually (spaced by a day or so) using one of the EMS style postage systems (depends what's available in your home country).

 

[wayned]

11 minutes ago, Crossy said:

That said, stuff sent by the regular mail system often gets through unmolested. I'd be tempted to send the cards individually (spaced by a day or so) using one of the EMS style postage systems (depends what's available in your home country).

I totally agree!.  I have shipped many things from the USA and UK, mostly farm equipment repair parts, and the only way to go was by mail using USPS or Royal mail.  The duty and VAT that I paid on import levied by the postal system was always less than I had calculated. Do not ship anything DHL, Fed Ex or other courier services they will rape you over the coals.  If you ship heavy equipment the only way to go is by sea freight and have it consigned to a reputable logistics company (I use Senator Logistics) for clearance and delivery. I have shipped many things this way even three 40' containers.

[LivinLOS]

Gifts, 'samples' any of those tricks dont work.. You can assume 30+7 % of the cost of goods and and shipping combined.. If sent by courier you will always pay this. If sent by regular post and under declared you have more chance. 

 

I would say your better off relying on a lack of knowledge and making them 50USD each and paying a little.. Trying to pay none they will get them, try to identify them and then assess them to any number they feel fit (I once had a legit 50 usd item assessed at 6000b) once assessed its near impossible to get it changed is my experience. 

[keeniau96]

Per all above, go legal. As you probably know the real pro graphics cards like some of the Quaddros have major price steps depending on the internal upgrades, but all look much the same, so need to be clearly marked to get the proper customs rates (wink wink, nudge). Also, I have had several pricey electronics items recently from Newegg in USA. They can ship direct to Thailand with very decent shipping rates and the official duty. No hassles at all.

[atyclb]

use the origin country postal service registered to ship as it will enter thai post. thai post has been fair. computer spare parts are eli taxed with vat only 7% if above a certain threshold value. i dont know the value.

 

dhl sucks. besides being expensive to ship they add on fees at will and may inflate the actual tax/duty they are charged as to make an additional profit.

 

a new lumix camera from usa i picked up at thai post rate was 7%. most ebay computer parts were never taxed . is each gpu worth 4000?  quadro?

Edited January 15, 2018 by atyclb

[jayj]

no,no...all 4 combined are worth 4000

 

however...i dont understand why my last packaged packed to the brim with electronic goods got through no problem.the package was OBVIOUSLY "molested"...the box was COMPLETELY wrecked.but i payed like almost nothing on the tax.

i had it shipped through my countrys regular mail and it got delivered by thai post

 

so,did i just get lucky last time?

[wayned]

1 hour ago, jayj said:

no,no...all 4 combined are worth 4000

 

however...i dont understand why my last packaged packed to the brim with electronic goods got through no problem.the package was OBVIOUSLY "molested"...the box was COMPLETELY wrecked.but i payed like almost nothing on the tax.

i had it shipped through my countrys regular mail and it got delivered by thai post

 

so,did i just get lucky last time?

AS I said I have shipped over 40 repair parts for my JD Combines over the past 10 years.  The heavy ones usually by sea, but the lighter ones always by USPS International.  The parts are all repair parts for the combines and I know the commodity  HS tariff code and insured that it was on all paperwork, duty 5% CIF Bangkok + 7% VAT on the CIF + Duty.   Some of the parts came  through with no charges at all but on all others the charges were less than I had calculated.  With the postal system it seems to be hit and miss, and with DHL you'll always be hit+++!  I've had many things sent through Royal Mail from the UK and the charge was only 7 baht.  I have been told if it is valued under 1000 baht Thai Post just puts it through with no duty or VAT.  It seems to be a crap shoot!

[sfokevin]

If it were something like a high value watch you could say the sender has just loaned it to you and you would be fine... 

[jayj]

im not american,im from italy...so usps would be the equivalent of royal mail,thai post,poste italiane(italian standard national postal service)?...basically the national post,correct?

 

so what youre sayin is i should declare the real values,provide the receipts and i would pay around 12% tax on the 4000$?(worst case scenario)

 

because if i bought these cards in thailand i would pay 6000$ for all this.theres a severe shortage and anywhere where they have them they sell em for an insane premium.i worry what would happen if customs checks the model number of the cards and does a search for it online and sees that one costs like 45000 thb.

 

if i say the cards are worth like 500 bucks and then they check and see the thai prices,im screwed.because even if i would later want to provide the authentic receipt then they would know i was lying...so im screwed either way

[wayned]

11 minutes ago, sfokevin said:

If it were something like a high value watch you could say the sender has just loaned it to you and you would be fine... 

Right!!!  If you want to temporarily import a high value item you import it using an international carnet which is applied for in the country of origin!

[jayj]

but with the carnet you have to send the goods back after the alotted time frame no?isnt it like 1 year?

[jayj]

no actually,italy is not part of the member countries for the carnet thing...so thats out the window...

[wayned]

6 minutes ago, jayj said:

im not american,im from italy...so usps would be the equivalent of royal mail,thai post,poste italiane(italian standard national postal service)?...basically the national post,correct?

 

so what youre sayin is i should declare the real values,provide the receipts and i would pay around 12% tax on the 4000$?(worst case scenario)

 

because if i bought these cards in thailand i would pay 6000$ for all this.theres a severe shortage and anywhere where they have them they sell em for an insane premium.i worry what would happen if customs checks the model number of the cards and does a search for it online and sees that one costs like 45000 thb.

 

if i say the cards are worth like 500 bucks and then they check and see the thai prices,im screwed.because even if i would later want to provide the authentic receipt then they would know i was lying...so im screwed either way

1.  Post Italianne would be the same as USPS or Royal mail.

2.  No I am not saying the you would only pay 12%.  Each type of equipment has different international HS commodity tariff code assigned and the duty applied depends on  the type of equipment and code assigned..  The code assigned to the parts that I import is 8432.90 and the applied tax is 5%.  I'm not familiar with computer parts but it looks like spare prates are coded 8473.30 and according to the AIFTA schedule for Thailand the duty is 0%.  If that is true then you will only be hit with 7% VAT.  Here's the entire code book , have a look for yourself:HS Code Book Thailand.pdf

[jayj]

thanks man...this is what its giving me

all the values are at ZERO

 

what does that mean?

[wayned]

15 minutes ago, jayj said:

thanks man...this is what its giving me

all the values are at ZERO

 

what does that mean?

Yes that's what I see too as long as that is the correct code. But as I said I know nothing about computers and what the parts are you are intending to  import, but if it is considered a "computer peripheral" you might have some problems and possibly lose the part on entry to Thailand and kiss it goodbye unless you have an import license!  I came across this blurb about restricted imports:

Thailand - Prohibited and Restricted Imports

Includes a list of goods that are prohibited from being exported to the country or are otherwise restricted.

---

Last Published: 7/18/2017

 

Imports of used motorcycles and parts, household refrigerators using CFCs, refurbished medical devices, gaming machines, and computer peripherals are prohibited.

 

 

 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.

 

I can give you the contact info of the Logistics Company that I use in Bangkok, a reputable Company, and he will tell you exactly what is required including applying for an import license if required.  He can handle the whole can of worms but if an import license is required it might be better to bite the bullet and buy the parts here.  That might be why they are more expensive.

 

 

[jayj]

god damn it ,why does it all have to be so complicated...yeah,if you could provide the contact info of the logistics guy,that would be great,thanks....much appreciated  

[ukrules]

43 minutes ago, wayned said:

1.  Post Italianne would be the same as USPS or Royal mail.

2.  No I am not saying the you would only pay 12%.  Each type of equipment has different international HS commodity tariff code assigned and the duty applied depends on  the type of equipment and code assigned..  The code assigned to the parts that I import is 8432.90 and the applied tax is 5%.  I'm not familiar with computer parts but it looks like spare prates are coded 8473.30 and according to the AIFTA schedule for Thailand the duty is 0%.  If that is true then you will only be hit with 7% VAT.  Here's the entire code book , have a look for yourself:HS Code Book Thailand.pdf

 

I read something that suggested the official tariff codes only apply if you're a registered importer so they're for business to business transactions.

 

This was regarding personal importation of goods which is why it's apparently better to use an agent who is a registered imported for larger more expensive items.

[KMartinHandyman]

god damn it ,why does it all have to be so complicated...yeah,if you could provide the contact info of the logistics guy,that would be great,thanks....much appreciated  

Yes it’s tough when trying to subvert declaring the true contents and value.

[jayj]

am i detecting sarcasm?

well,if the law wasnt so screwed up we wouldnt have to be jumping through these hoops...this is A GIFT!in a perfect world,no country should have any claim on what private citizens are sending to other private citizens at ZERO cost.but if they wanna play dirty and milk us dry for every god damn cent,then so will we!

if i say its a god damn gift,then its a god damn gift.i have proof since the sender will be sending from the same address that i have on my passport.unless the government can prove otherwise we have reached an impasse and i have evidence on my side...they have nothing!there has been no transaction coming from my side.far as theyre concerned my family is millionaires who send expensive gifts...thats nobodys business .if the transaction is happening from "country a" to "country b" and the goods are being shipped by the seller from "country a" to "country b"  then thats where the tax should be applicable.

 

but since thats not how it works,i have to somehow get around it.im so tired of being at the mercy of all these anti consumer laws...

[KMartinHandyman]

In some people case (who’s families aren’t millionaires) poor people would pay for the high value item and have them forward it, calling it a gift to hopefully find a way from paying the true import costs.

[jayj]

yes but that shouldnt matter...somebody bought it in one country and shipped it to me in another country.if there was premeditation and malice aforethought thats besides the point.fact remains...a private citizen is shipping something to another private citizen.the events that lead to that and unfolded prior to that should be irrelevant in the eyes of the law.....im sorry if i ramble on but this is one of my pet peeves.how everything is done by the book and every technicality counts when it serves THEM...but when the shoes on the other foot is the complete opposite."we cant prove they didnt buy it on your behalf so...nothing else to do but tax it as if it were new comin straight from the store i guess...drrrr" 

[wayned]

9 hours ago, jayj said:

god damn it ,why does it all have to be so complicated...yeah,if you could provide the contact info of the logistics guy,that would be great,thanks....much appreciated  

Marc should be your primary contact, Ralf is COO and spends most of his time in Miami, Florida:

CUSTOMS BROKER AND LOGISTICS, Bangkok Thailand

SENATOR INTERNATIONAL LOGISTICS LTD.
2nd Fl. Permpoom Bldg.
32 Sukhumvit Soi 87
Bangjak, Bangkok 10260
Thailand
 
Tel:       +66-2-3114408 Ext. 100 Ralf

                            Ext. 105 Mark
Fax:      +66-2-3114409
Mobil: +66-81-8488171 Ralf

           +66-81-8488370 Mark
Email :   [email protected]

Email:   [email protected]     
Internet: http://www.senator-international.com

[wayned]

9 hours ago, ukrules said:

 

I read something that suggested the official tariff codes only apply if you're a registered importer so they're for business to business transactions.

 

This was regarding personal importation of goods which is why it's apparently better to use an agent who is a registered imported for larger more expensive items.

AS I said I've i,ported many parts as an individual, not a company.  I have had them shipped direct to me via the postal system and have had the larger shipments consigned to and sent to my broker in Bangkok for clearance but the paperwork was always in my name and I insured that the correct Commodity code was on it starting with the invoice.  Most, if not all, of the shipments sent via post had duties and VAT less than I had calculated.   The larger parts were always spot on with the 5% duty, HS code 8432,90, and VAT applied.  When I order chains from China, due to their export regulations, they can only export them as "roller chains" and I pay 10% duty on import.  I am told by the broker that I could apply for a refund but it's not worth the hassle.

 

I bought complete JD combines in the US.  In order to ship one here it has to be trucked to a facility in Illinois, purchased in Minnesota, and disassembled and packed in a 40' container.  I make sure that the invoice supplied to customs does not the cost of these operations.  If it did the import duties and VAT would be about 34000 baht more.

 

And yes I do use an agent, posted above, who handles everything from drop and pulling the container at the point of origin to delivery in Nakhon Sawan Province.  He's the complete deal including his own in house customs clearance department.  Timing is very important as there are set times by the shipper on use of the container and delays cause increased container drayage and storage.

[Crossy]

11 hours ago, ukrules said:

I read something that suggested the official tariff codes only apply if you're a registered importer so they're for business to business transactions.

No problem getting the regular coded rates as an individual. However, if I understand correctly, you can't take advantage of the FTA rates.

[wayned]

1 hour ago, Crossy said:

No problem getting the regular coded rates as an individual. However, if I understand correctly, you can't take advantage of the FTA rates.

I have a feeling Thai Post ignores the HS code on the export document and they apply the FTA rates since what I have to pay is always lower than my calculations.  But I put it on there, and am prepared to pay the amount due, to protect myself from being charged some outrageous amount.

[Crossy]

1 minute ago, wayned said:

I have a feeling Thai Post ignores the HS code on the export document

You may be right, they do seem to be a law unto themselves (just like Customs and Immigration).

 

I was more commenting on the courier/broker route where the rates (when codes are provided) are correct but no FTA rate.

[BEVUP]

9 minutes ago, Crossy said:

You may be right, they do seem to be a law unto themselves (just like Customs and Immigration).

Your right 

I think this import duty is crap

In most countries this was designed to protect the local industries, that means if they actually make an item not just because it is made out of Plastic or Steel

Eg : I,ve bought in a Swing set & Clothes line that Thai don't make ( even though they can weld a Swing set together in the play ground & as far as clothe lines go they only have Racks not Hills Hoists )

Cost me double as the first thing they say IS IT Plastic or Metal

Nothing to do with the item

? Do they actually even make steel here 

I'm pretty sure they make plastic, but the tax should be on the final product if made by a Thai company EG : Pool Filter 

 

[wayned]

41 minutes ago, BEVUP said:

Your right 

I think this import duty is crap

In most countries this was designed to protect the local industries, that means if they actually make an item not just because it is made out of Plastic or Steel

Eg : I,ve bought in a Swing set & Clothes line that Thai don't make ( even though they can weld a Swing set together in the play ground & as far as clothe lines go they only have Racks not Hills Hoists )

Cost me double as the first thing they say IS IT Plastic or Metal

Nothing to do with the item

? Do they actually even make steel here 

I'm pretty sure they make plastic, but the tax should be on the final product if made by a Thai company EG : Pool Filter 

 

Yep! Before you import anything it's best to know exactly what the import duties will be and if there are any restrictions.  Before I imported the First JD combine I checked around by contacting different brokers in Bangkok.  I got quotes of 30% duty, 12% duty, 10 % duty and I don't know I'll have to check with my sister Company.  I finally was put in touch with my current broker (above) that knew exactly what I wanted and provided the quote of 5% duty backed up with a copy of the AIFTA schedule for Thailand.  If it had been higher than 10% I would not have done it.  If you don't check first and know exactly what the facts are you are at the mercy of the agent that you use.  The pictures shows the carcass being unload on a pile of dirt in the field with the 116 other major parts to follow to be put together without instructions.